This is the spirit in which Michael Meacher, chairperson of the Labour ordinating Committee, forward his solution for the steel industry.
an article published Guardian on « January. argues that 'there is evitable about contraction down in the industry':
an important starting point, because -every other industry in steel is undergoine modernisation programme, could bring it into line with the most advanced production methods that present-day technology has to offer.
The requirement closure and mass redundancies are based on a problem that is being experienced throughout the West glut of steel. But that problem. of over-production capitalism. It arises not from fulfillment of demand for steel, but the system's inability to match production capacity with potential demand. Decline Meacher spells out the decline in the main domestic markets for steel. val lie nal accade to 19/0, proquetion in motor vehicle manufacture fell by 39 per cent, and steelwork by 38 per cent, building and marine engineering by 58 per cent, and construction by per cent.
Reversing the decline in these industries would dramatically change the prospects for steet, and it is this:
difficulty is that he does not advocate the one course that could secure this objective: workers' steel-making and steel-using dustries, imposed by workers. trol over production_ and distribution.
The Treasury, he says, forecasts a fall of 2 per cent in the gross domestic product in 1980-l, company BSC's plan for a cutback of almost a third in steel production.
Meacher argues that there would be an expansion of 'perhaps 5 per cent in stee with a growth rate of 2 per cent in the British economy, lifting steel producuon mrom ine jected 15m tonnes to nearly 22.5m LOLLICS. Estimates Meacher proposes to the economy management. which simolv consists of higher expenditure in the public SeCLOT coupled with private sector' (presumably cuts in inCohas put in the Meacher nothing inloss account? runTrading Profit/Loss 1976: - 297.9 unlike practically Britain 1978: - 257.6 1979: - 119.7 come tax and Around.
unique Hasty Nabl or nol obnging.
particular, have vestment industrial plant machinery.
which shiprefused to carry out. even. when billon. The than from investments here. bians tor. lne Growth conboost Meacher's which would ac- public expenditure.
of Meacher's Pail mand to Britain.
plu Wing unemployment. stimulate 'demand *tax cuts in the BSC interest mounts 'It a measure of industrial performance is required, it is the return before interest which is paid which is relevant; interest payments to the government, the banks and other lenders are simply the say in which the surplus earned is distributed.' — Financial Times, 2 January 1980.
And the pre-interest figures of the British Steel Corporation's profit and BSC losses [and interest] — Emillions Interest Payments - 107.6 140.7 - 167.7 - 197.4 - 207.7 Over the past four years, the steel corporation has declared a loss of £1.215m. But of this, over half - a total of £61 moneylenders in interest payments.
VAT). This, he estimates, would boost production all pay Unfortunately, capitalists have a With the present depressed level of profits, for example, they are just as likely to ab- picket sorb increased demand by hiking up prices than to expand production.
the expansion would be required in industries which overhaul in the scape of massive ite needed complete plant and this investment capitalists have = Loss Declared = 400.0 - 27.7 • 455.0 - 327.4 was handed to the ¡ the steel unions should be striking over Is nol so much an inadequate Hotter as a disastrous corporate strategy...' Presumably he doesn't mean that the steelworkers shouldn't be on the lines over pay, but approach to drawing up a plan for steel does leave out small questions like the existence of a Tory government and the notion of class struggle.
Perhaps this is why he does not suggest two measures which would have an immediate effect on the job CORRY Closure of the steel works will bring devastation to the town.
loss and closures in steel: refusing to which acfor over half of BSC's losses four years; and navaluable. step the Photo: SOCIALIST CHALLENGE
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THE Labour left has an unenviable task. While the Callaghan- Healey wing of the Labour Party merely dresses up policies which seek to bolster profits at the expense of working class living standards — Labour's left would have us believe that it can solve capitalism's crisis without harming anyone.